Stirol Launches Production of Biodiesel

Stirol (STIR) announced yesterday that it has launched full-cycle production of biodiesel from sunflower oil, with annual capacity of 3 ths mt. The company says this is another step toward diversifying into products not dependent on natural gas as an input. Stirol plans to use its biodiesel to fuel its corporate car park, and to offer it for sale. Vladimir Nesterenko: We welcome the company’s efforts to diversify away from natural gas. However, so far none of the company’s moves have been very substantial. The biodiesel facility mentioned above would add maximum USD 4 mln, or 0.8% to the company’s revenue, and no more than USD 0.4 mln to its EBITDA. Ukraine’s total biodiesel capacity is 200 ths mt a year, 90% of which is held by a single company, Oriana-Galel. The major issues producers are concerned about are incomplete legislation and production cost exceeding those of traditional fuels.